PURPROSE
Non-Conforming FLEX Portfolio Loans are recommended for borrowers intending to hold a portfolio of 5 or more units for 3 or more years before selling or refinancing. This loan can also be used for short-term holds, however there is a step-down prepayment penalty for the first 3 to 5-years. This is a loan collateralized across multiple residential 1-4 unit and/or multifamily 5+ unit properties up to 20 units. Income producing properties must be performing at a DSCR of 1.15x or more for lowest pricing. DSCR's under 1.15 see a lender point increase of 0.375% to 1% added to the base rate.
RECOURSE
Recourse and Non-Recourse options available.
PREPAYMENT PENALTY
All Residential Portfolio Loans have a prepayment penalty, usually through the first 3 to 5-years of the loan. Step-down and yield maintenance prepayment options are available.
- Step-Down (3-2-1)
- Step-Down (5, 4, 3, 2, 1)
- Flat 5% through 5-Years
- Yield Maintenance
LOAN LIMITS
Residential Portfolio Loans are available for 1st mortgages starting at $100k per property. (exceptions available)
CLOSING
45 to 60 Days
RESERVES
6 to 9-months mortgage reserves are required.
NET WORTH
A strong schedule of real estate owned is important but not required. We usually like to see a net worth equal or greater than the loan amount.
LOAN TERMS & AMORTIZATION
1-4 Unit & Multifamily Portfolios: 5 to 30-year fixed terms. 30-year amortization.
CREDIT SCORE REQUIREMENTS
650+ (exception to 640)
OPERATING INCOME - SEASONING
Approval and interest rates are primarily based upon the net operating income of the property, LTV, and middle credit score. The property must show it has been operating at a net operating income over the last 3-months to support the DSCR at the proposed market interest rate.
DOCUMENT REQUIREMENTS
- FULL or LITE-DOC UNDERWRITING
- Rent Roll
- P&L / Last 12-months
- Borrower 1003 or Personal Financial Statement
- Schedule Real Estate Owned
- 3-Months Bank Statement(s) Verifying Down Payment/Reserves
- Minimum 3 Quality Property Photos
- Property Insurance Policy with costs
- Borrower Photo ID
- LLC Operating Statement
- LLC EIN Letter
- LLC Articles of Incorporation
- No tax return options available
